Spotify for Creators, X Has Competition, and Twitch still Streaming King
Welcome back to VidCon’s bi-weekly Industry newsletter, where I filter through hundreds of news articles, headlines, and industry thought leaders to bring you the best of what the creator economy has to offer.?
Happy Thanksgiving to all my Americans. I hope you’re suitably full of turkey, gravy, and pie. Take it easy this Friday, kick your feet up, and enjoy this week’s newsletter.
Here’s what we have for you this week:?
This week we’re joined by Sherry Wong, creator, digital entrepreneur, and CEO/Founder of Roster, a hiring platform for creators looking to expand and build their businesses. Roster works with some of the biggest creators, such as MrBeast, Dude Perfect, Smosh, and Mythical (to name a few).?
Spotify Takes on YouTube To Win Over Creators and Podcasts
Spotify started as a music streaming service, contributing over $9 billion in royalty revenue to the music industry in 2023, and under the leadership of Founder & CEO Daniel Ek, the platform has grown to over 640 million users, including around 246 million premium subscribers as of Q2 2024 (according to Statista). However, music is not Spotify’s sole focus. Since its launch in 2006, the company has expanded into audiobooks and podcasting while maintaining its vast music catalog.
At a product launch in LA a couple of weeks ago, Spotify made a significant announcement to a room full of creators: the company is pivoting towards video and creator-focused content. Gustav Soderstrom, Spotify’s Co-President and CPO, unveiled the launch of ‘Spotify for Creators’, introducing a suite of features aimed at empowering creators:
Although Daniel Ek refrained from naming competitors, he described the new offering as “superior to other platforms.”
Spotify’s announcement is part of a broader strategy to dominate both the video and audio content ecosystems. Spotify Creators combined with investments in flagship podcasts like The Joe Rogan Experience ($200 million), Call Her Daddy ($60 million), and acquisitions such as Megaphone ($235 million) and Anchor ($154 million) demonstrate the platform's interest in creator-first content and not just music.
While it remains to be seen which platform will emerge as the leader in podcasting content, Spotify’s significant investments, creator-focused tools, and new, robust monetization models make it clear that the company is determined to compete with platforms such as YouTube.
Could Bluesky or Threads Succeed X?
Over the past few months, I’ve written extensively about the challenges facing X, but competitors Bluesky and Threads appear to be capitalizing in a big way, attracting millions of users seeking alternative platforms to call home.
As the buzz around Bluesky and Threads intensifies, could we see X dethroned as the go-to platform for real-time news? In my opinion, no– well, at least not anytime soon. There’s no denying that X’s controversial decisions regarding privacy, freedom of speech, and brand safety have driven many users away. But Bluesky and Threads still have a significant gap to close when compared to X’s 588 million users. Bluesky currently reports around 20 million users, while Threads is closer with 275 million monthly active users (according to Mark Zuckerberg himself). That said, considering Meta’s massive user base across Instagram and Facebook, and Thread's ability to easily plug into that audience and cross promote content, I take the above figure with a pinch of salt.?
Additionally, Bluesky servers have been struggling to keep up with the surging demand of new users – 3.5 million daily – a number the platform's current infrastructures can’t manage. In today’s world, where users demand seamless experiences, these server issues could negatively affect user retention.
For me, a major challenge for both Bluesky and Threads is the noticeable absence of news outlets, publishers, and key influencers on their platforms and concerns around fake accounts and lack of verification of high-profile users. For now, major publishers like The New York Times, Vox, and Reuters (among others) are sticking with X, signaling that the audience and advertising dollars are still predominantly with X.?
As we’ve seen with platforms like Clubhouse and BeReals, acquiring users through hype can only take a platform so far. Maintaining growth on a global scale requires robust worldwide infrastructures, marketing, a huge amount of funding, and the ability to comply with local regulations. No one thus far has been able to do that.
In summary, while X has some challengers coming for the throne, we are still a ways off of Threads, Bluesky, or another competitor becoming serious threats to the social platform giant.
Twitch Still Reigns as the King of Streaming Content
Twitch has long been the leading platform for streamers, with relatively little competition. However, in recent years, platforms like Kick and YouTube have made significant strides in the live-streaming space. And while Twitch has faced challenges, including controversies over creator monetization, banning of high-profile streamers, and advertiser pressure amid backlash related to content on the Israel-Gaza conflict, it hasn’t seemed to slow the platform's growth.?
A recent quarterly report by Streamlabs and its data partner, Stream Hatchet, sheds light on the state of the streaming market and it makes for interesting reading.?
Here’s what they found about Twitch’s performance in Q3 2024:
By comparison, one of Twitch’s most notable competitors, Kick, showed impressive growth, but still nothing on Twitch:
This data suggests that while the competition is gaining ground, Twitch’s dominance remains. Kick’s strategy of “financially incentivizing” high-profile Twitch streamers, such as Ninja, xQc, and Amouranth, to sign exclusive contracts has contributed to the platform’s significant growth, but it still has a long way to go in closing the gap.?
But why is this? Twitch maintains streaming dominance (for now) predominantly because of its long tail of creators, with the platform hosting 85% of all unique streaming channels. Much like YouTube’s foundational role as the ‘go-to’ in long-form content, Twitch has established itself as the cornerstone of live-streaming, offering communities across diverse genres and verticals. This scale and diversity are currently unmatched.
However, the live-streaming landscape is constantly evolving. Platforms like Facebook Gaming, TikTok Live, Kick, YouTube, and Rumble are increasingly investing in live-streaming, attracting high-profile personalities, celebrities, and politicians. But with the recent ‘adpocalypse’ making headlines on Twitch, we are seeing advertising spend pulled back, affecting all platforms, which is most likely a short-term byproduct of the state of the economy at large. But this will most certainly open the door for more lucrative exclusive streaming deals as creators struggle to solely rely on ad revenue.
The streaming ecosystem could look significantly different over the next few years as these platforms continue to increase their focus and funding on live-streaming opportunities and develop unique offerings. For now, Twitch remains the undisputed king of live-streaming.
This week, we asked Sherry Wong our three rapid-fire questions. Sherry is the CEO & Founder of Roster, a platform that allows creators to hire experienced creatives for their business. Since launching, Roster has helped some of the world's most successful creators hire in-house teams, from thumbnail experts, editors, and script writers, to c-suite execs.?
What current trends in the creator economy are you most excited about?
I’m excited about the rise of “creator founders” launching diversified products — from e-commerce stores and membership communities, to apps and startups. Once creators have an established audience, they’re perfectly positioned to use their trust and insights into what their viewers truly want. This shift not only diversifies revenue streams, but also positions creators as entrepreneurs building their own ecosystems.
It’s incredible to see creators evolve into business leaders and even employers in their niche.
What are the biggest hurdles the creator economy is facing?
The biggest hurdle is sustainability in monetization. Many creators rely heavily on a single revenue stream, like ad revenue or brand deals, which can be inconsistent.
The challenge here lies in teaching creators how to diversify income while managing the operational parts that comes with scaling a business.
Creators often need help hiring, managing teams, and understanding the ‘business side’.
This is one of the reasons why I launched Roster - a platform that helps creators hire experienced professionals. Especially for creators who need to hire, finding the time to recruit, vet, and onboard talent can feel impossible.
That’s why we aim to make the hiring process as seamless as possible, so creators can focus on the things that matter most, like growing their audience and creating content.
Name one company you think is doing interesting things within the creator economy.
One standout is Ali Abdaal, doctor turned YouTuber, who then transitioned into being an entire educational brand — offering courses, communities, and books.
His success lies in both his transparency and hiring the right team - he openly shares revenue numbers (in the millions), insights on productivity, and the challenges of managing a personal brand. By outsourcing tasks like editing and management, Ali focuses on creating while his team supports operations, setting an example for creators looking to scale.
?? Job Alert??
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See you all in a couple weeks ??
Director of Programming & Industry Spokesperson - VidCon